The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true v ...

Core Viewpoint - Orix (IX) is currently positioned as a more attractive investment option compared to American Express (AXP) for value investors based on various financial metrics and rankings [1][3]. Valuation Metrics - Orix has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to American Express, which has a Zacks Rank of 3 (Hold) [3]. - The forward P/E ratio for Orix is 7.83, significantly lower than American Express's forward P/E of 18.69, suggesting Orix is undervalued [5]. - Orix's PEG ratio stands at 0.79, while American Express has a PEG ratio of 1.39, indicating Orix's expected earnings growth is more favorable relative to its price [5]. - Orix's P/B ratio is 0.83, contrasting sharply with American Express's P/B of 6.37, further highlighting Orix's relative undervaluation [6]. - Based on these metrics, Orix holds a Value grade of A, while American Express has a Value grade of C, reinforcing the view that Orix is the better investment choice for value investors [6].

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...

Core Insights - The House Edge is recognized as a unique marketplace service in the casino, gaming, and online sports betting sectors, providing superior returns through in-depth research and industry insights [1][2] Company Insights - Howard Jay Klein, with 30 years of experience in major casino operations, leads The House Edge and focuses on value investing by assessing management quality [2] - Klein's background includes significant roles at Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace, contributing to his extensive knowledge of the industry [2] Industry Insights - The House Edge leverages a vast intelligence network across the US gambling and entertainment sectors, including insights from various levels of employees and management [2]

Financial Data and Key Metrics Changes - Net income for Q3 was JPY 88.8 billion, with a cumulative total of JPY 271.8 billion for the nine months ending December 2024, representing a 24% year-over-year increase and an annualized ROE of 9% [9][14][12] - The company is on track to achieve a full-year net income target of JPY 390 billion, with a progress rate of 70% towards this goal [9][14] Business Line Data and Key Metrics Changes - Finance segment profit decreased by 3% year-over-year to JPY 137.1 billion, with a progress rate of 69% towards the full-year forecast [16] - Operations segment income increased by 2% year-over-year to JPY 161.4 billion, with a progress rate of 67% [18] - Investments segment income surged by 86% year-over-year to JPY 129 billion, with a progress rate of 69% [19] Market Data and Key Metrics Changes - The Finance category is expected to maintain stable earnings despite regional policy differences, while the Operations category benefits from strong airport concessions and asset management growth [20] - The Investment category aims to enhance profitability through capital recycling, with significant gains expected from divestments [22] Company Strategy and Development Direction - The company plans to continue promoting capital recycling and asset management globally to strengthen its balance sheet and enhance profitability [54] - The new COO emphasizes providing essential solutions to societal issues and maximizing business opportunities across diversified segments [52][53] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, particularly in Japan, due to rising interest rates and inflation concerns [44][46] - The company expects to leverage its diversified portfolio to navigate uncertainties and pursue new investments while promoting exits [51] Other Important Information - The company completed JPY 50 billion in share repurchases, adhering to its policy of limiting treasury stock holdings [12][13] - The divestment of Greenko is anticipated to significantly impact the company's profit achievement for the fiscal year [84][86] Q&A Session Summary Question: Future expectations for ORIX USA and weak credit profit - Management indicated that improvements in credit-related businesses are underway, with a focus on enhancing sales and marketing capabilities [58][60][62] Question: Midterm plan ROE target and share buyback strategy - Discussions on the midterm plan are ongoing, with a focus on achieving an ROE target of 11% or higher, leveraging share buybacks as a growth driver [70][76][78] Question: Impact of Greenko divestment on annual plan - Management expressed confidence in executing the Greenko sale by the end of the fiscal year, but acknowledged potential impacts on profit if not completed [82][84] Question: Profitability outlook for the Finance business in Japan - Management noted that rising interest rates are positively impacting asset management yields, supporting stable profits in the Finance segment [90][91]

Financial Data and Key Metrics Changes - For the first half of FY 2025, ORIX recorded a pretax profit of ¥257 billion and a net income of ¥182.9 billion, representing a 42.8% year-over-year increase, marking a record high for the first half [5] - The first half ROE was reported at 9.3%, with a target of 9.6% for the full year [6] - Segment profits totaled ¥287.8 billion, with Finance at ¥92.8 billion, Operation at ¥105.8 billion, and Investment at ¥89.2 billion, achieving 47%, 44%, and 48% of their respective full-year targets [7] Business Line Data and Key Metrics Changes - In the Finance category, profits were impacted by the sale of a significant stake in ORIX Credit, but strong performance from ORIX Life Insurance contributed positively [8] - The Operation category saw a 5.1% increase in pretax profit to ¥105.8 billion, driven by a rise in foreign passengers at Kansai Airport and improved hotel occupancy rates [14] - The Investment category achieved a 200% year-over-year increase in pretax profit to ¥89.2 billion, focusing on business succession and partnerships with SMEs [21] Market Data and Key Metrics Changes - The company remains cautious regarding the Greater China region due to sluggish consumer spending and real estate issues, with investments in the region accounting for less than 3% of total group assets [13] - The U.S. market is characterized by geopolitical risks and potential economic stimulus measures, which could impact interest rates and inflation [10] Company Strategy and Development Direction - ORIX aims to proactively grow its asset scale in the ORIX USA business while maintaining a conservative view on credit cards until FY 2026 [11] - The company is focusing on expanding its renewable energy business and has announced the acquisition of hydropower resources in Spain [18] - Future investments will prioritize high-ROE companies and divestment of low-ROE businesses, with a target to expand AUM to ¥100 trillion [84] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about political instability in Japan and the U.S., which could affect financial conditions and interest rates [9][10] - The company anticipates continued strong earnings in the second half of FY 2025, with a focus on achieving the full-year net income target of ¥390 billion [5][52] - Management remains cautious about the U.S. real estate market, expecting a slow recovery due to rising interest rates and increased nonperforming loans [64] Other Important Information - The interim dividend was set at ¥62.17 per share, a 45% increase from the previous year's interim dividend [35] - The company is committed to a share buyback program of ¥50 billion to improve ROE [36] Q&A Session Summary Question: How comfortable is the company with achieving the ¥390 billion profit target for the full year? - Management expressed confidence in achieving the target, noting that they are scheduled to generate more gains in the second half and that the pipeline is on schedule [52][53] Question: What is the impact of the recent U.S. presidential election on the company's business and investment strategy? - Management indicated that the political environment is difficult to read, but they will evaluate opportunities on a deal-by-deal basis, considering the current exchange rates [58][60] Question: What were the challenges faced by ORIX USA in the second quarter? - Management noted that rising interest rates have led to increased nonperforming loans, impacting profitability, but they are working on repositioning and renovating assets [64][66] Question: What is the strategy for improving corporate value and achieving midterm management plan goals? - Management discussed the need for better disclosure and understanding of the company's strategy, with a focus on qualitative discussions leading to quantitative targets [72][76] Question: How does the company plan to generate capital gains moving forward? - Management stated that they aim to maintain a balanced approach to capital gains, with a commitment to achieving a 39% dividend payout based on first-half profits [102][103]

Orix (IX) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a changing ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being unde ...

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